Answer to Question #130658 in Economics for yoza

Question

Given the points FOR DEMAND (100:8000) & (150:7250) ,SUPPLY POINTS (100:0)&(150:600)

, what are the demand and supply equations for the bluetooth speaker market (your answer should include two equations: Q_d=a-bP and Q_s=c+dP, where a and c are the intercept values, and b and d are the slope values).

What is the equilibrium price and quantity traded in the market for bluetooth speakers (hint: set the two equations estimated in question 1 equal to each other)?

Government is considering putting an excise tax of R50 (per unit) on bluetooth speakers to be paid by manufacturers, how would this tax influence the market (in your answer, mention how the demand/supply curves respond; why they respond in the way the do; and what the new equilibrium price and quantity is)? [4]

With respect to the above analysis, would producers shift the entire burden of the tax onto consumers? Why, or why not?

Answer 1

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